What remains of the Foreign Exchange and Foreign Trade Control Act still discourages foreign investment.
The foreign currency exchange then hosts the trade of yen and dollars.
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The result is a shortage of foreign exchange and the driving underground of Congo's lucrative diamond trade.
This suggests that most of the trade in foreign exchange is directed to settle external trade balances, rather than for speculative reasons.
We Chinese consumers believe it is insane for our government to continue to chase the chimera of ever-growing foreign exchange and trade surpluses.
What would be of foremost importance in this rebalancing process would be to bring the large trade surpluses and foreign-exchange reserves down and shifting the driver of economic growth from investment and exports to domestic consumption, argues Thornton.
Speaking at the Paydirt Africa Down Under conference in Perth, the Department of Foreign Affairs and Trade secretary Dennis Richardson said the number of Australian mining firms listed on the stock exchange and operating in Africa had jumped from 54 in 2003 to more than 160 this year.
One reason China is setting up its sovereign wealth fund now is that huge trade surpluses and a vast reserve of foreign exchange mean it simply has too much cash to absorb into its own economy, and capital controls keep it from investing in liquid assets like American T-bills.
They pointed to Target 2 Securities and a foreign exchange trade depository being developed by DTCC and SWIFT as examples of industry platforms which will be used by multiple institutions.
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The Bank of China's suspension of business further complicates the ability of the Foreign Trade Bank, North Korea's main foreign exchange bank, to access a key financial market.
Japan achieved massive trade surpluses with the US, and built the largest accumulation of foreign exchange (mostly dollars) in the world.
Thanks to its widening trade surplus and strong inward investment, the country has experienced heavy inflows of foreign exchange, which swell domestic liquidity.
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The question was whether those not engaged in legitimate trade were taking advantage of special, restricted access to China's official foreign-exchange market set up for those who need yuan to buy mainland goods.
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In foreign exchange markets, the euro was higher against the dollar in late Asian trade as investors cheered the formation of a new government in Italy following a weeks-long political impasse in the wake of February's inconclusive general election.
"We're getting back to an environment where investors can trade on fundamentals rather than rhetoric, " said Nigel Khakoo, co-head of foreign-exchange trading in Europe at Nomura in London.
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